ASSESSMENT OF EMPLOYEE’S PERCEPTION OF FACTORS AFFECTING REVENUE GAINED FROM EXPORTOF MEAT PRODUCTS: THE CASE OF LUNA EXPORT SLAUGHTERHOUSE PLC, ADDIS ABEBA, ETHIOPIA

Abstract

Export of meat products is one of the sectors that holds promise in contributing a solution the country’s foreign currency problem. As such, the country’s meat product exporters have to tackle different problems in order to keep their firms thriving in the export business. Among the factors that affect the business, specifically the revenue that is gained from export of meat products are product execution, global marketing, the business environment and price are considered in this study. The study sets out to investigate the effect of the mentioned four factors on the revenue gained from export of meat products from the employee’s perspective and followed a descriptive research approach. Data was collected through questionnaires, focused group discussions, and by critically reviewing organizational reports as a secondary data source. Focused group discussions guided by structured questions were held with members of the management for a deeper understanding of the subject matter under study. Collected data was then sorted, encoded, analyzed and interpreted. Accordingly, findings revealed that product execution which was measured by parameters of production rate and production cost, affected the revenue gained from export of meat products. Results convey that increasing production cost increases revenue and increasing production rate increases revenue as well by the rules of economies of scale. Moreover, global marketing which was measured with three parameters namely, Exchange rate, Government regulation in foreign market and Channel of distribution. Exchange rate status was found to have a negative effect on revenue, production cost and price. Government regulation in foreign market showed to have negative effect whereas channel of distribution the company uses is shown to have a positive effect on the revenue of the company, according to the findings of the study. The effect of the business environment was assessed in terms of effect of competitors and policy and procedures on the revenue gained by the firm from exporting meat products. The findings have revealed that both have a negative effect on revenue of the firm. Hence, the four factors considered in this study to have an effect on revenue of the firm – from employee’s perspective. In order to tackle the problems caused by these factors, its recommended for the exporters to influence a discussion platform with concerned governmental organs. Moreover, the firm’s top management should focus on research and development to bring about operational efficiency.